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Author Question: Suppose that the average equilibrium monthly rental price of apartments and rooms in a college town ... (Read 191 times)

jhjkgdfhk

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on: Jun 30, 2018
Suppose that the average equilibrium monthly rental price of apartments and rooms in a college town had been steady at 600, but then the college expanded enrollment from 10,000 to 12,000 . Suddenly there is a shortage of rental housing at the prevailing price of 600 . Which of the following is most likely to be true?
 a. The shortage occurred because demand increased, and a new market equilibrium will result in higher rental prices and more rental units available on the market.
  b. The shortage occurred because supply increased, and a new market equilibrium will result in lower rental prices and fewer rental units available on the market.
  c. The shortage occurred because demand decreased, and a new market equilibrium will result in lower rental prices and fewer rental units available on the market.
  d. The shortage occurred because demand increased, and a new market equilibrium will result in higher rental prices and fewer rental units available on the market.

Question 2

At the equilibrium price, deadweight loss is minimized.
 a. True
  b. False
  Indicate whether the statement is true or false


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kjo;oj

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Reply #1 on: Jun 30, 2018
Answer to Question 1

a

Answer to Question 2

False


jhjkgdfhk

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Reply 2 on: Jun 30, 2018
Excellent

scottmt

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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